DHS awards $1.9M for USCGC Waesche dockside repairs, with 5 bids received

Contract Overview

Contract Amount: $1,923,563 ($1.9M)

Contractor: JAG Industrial Services, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-06-01

End Date: 2026-07-28

Contract Duration: 57 days

Daily Burn Rate: $33.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD IS FOR THE DOCKSIDE REPAIRS TO THE USCGC WAESCHE IN ALAMEDA, CA. PERIOD OF PERFORMANCE IS 01 JUN 2026 TO 27 JUL 2026.

Place of Performance

Location: ALAMEDA, ALAMEDA County, CALIFORNIA, 94501

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.9 million to JAG INDUSTRIAL SERVICES, INC for work described as: THIS AWARD IS FOR THE DOCKSIDE REPAIRS TO THE USCGC WAESCHE IN ALAMEDA, CA. PERIOD OF PERFORMANCE IS 01 JUN 2026 TO 27 JUL 2026. Key points: 1. The contract value of $1.9 million for a 57-day repair period suggests a daily rate of approximately $33,747. 2. Competition was present with 5 bids, indicating a degree of market interest for this specialized service. 3. The fixed-price contract type aims to control costs, but the final price will depend on the contractor's execution. 4. Performance is scheduled for June-July 2026, aligning with potential operational needs for the vessel. 5. The award to JAG INDUSTRIAL SERVICES, INC. requires assessment of their past performance in similar maritime repair projects. 6. The repair location in Alameda, CA, suggests a focus on West Coast fleet readiness.

Value Assessment

Rating: fair

The contract value of $1.92 million for a 57-day period results in a daily rate of approximately $33,747. Benchmarking this against similar vessel repair contracts is difficult without more specific details on the scope of work. However, the daily rate appears to be within a plausible range for specialized maritime maintenance, though a detailed cost breakdown would be needed for a more precise value assessment. The fixed-price nature of the contract shifts some risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), with 5 bids received. The use of SAP suggests the acquisition was valued below the full and open competition threshold, but the number of bidders indicates sufficient market interest. The competition level, while not extensive, likely provided a reasonable basis for price discovery and selection of a qualified contractor.

Taxpayer Impact: The competition, though limited by SAP, likely resulted in a fair market price for taxpayers, avoiding excessive costs associated with sole-source awards.

Public Impact

The U.S. Coast Guard benefits from the repair, ensuring the operational readiness of the USCGC Waesche. Dockside repair services will be delivered to maintain critical maritime assets. The geographic impact is localized to Alameda, California, supporting regional maritime infrastructure. The contract supports skilled labor in the shipbuilding and repairing sector within the specified performance period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite the fixed-price contract.
Dependence on JAG INDUSTRIAL SERVICES, INC.'s capacity and expertise to complete the repairs within the tight timeframe.
Limited visibility into the specific technical requirements and potential complexities of the dockside repairs.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Competition among 5 bidders suggests a reasonable market price was likely achieved.
Defined performance period (57 days) allows for clear scheduling and oversight.

Sector Analysis

The shipbuilding and repairing sector (NAICS 336611) is a critical component of the U.S. industrial base, supporting both commercial and government maritime needs. Federal spending in this sector often involves maintenance, repair, and new construction of vessels. This contract for dockside repairs fits within the broader category of vessel maintenance and sustainment, ensuring the operational readiness of Coast Guard assets. Comparable spending benchmarks would depend heavily on the specific scope of work, but the awarded amount is typical for specialized repair services on mid-sized vessels.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities for small business participation were missed or if the prime contractor has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight will be managed by the U.S. Coast Guard, a component of the Department of Homeland Security. The fixed-price contract type provides a degree of accountability by linking payment to performance. Transparency is facilitated by the public nature of federal contract awards. Specific Inspector General jurisdiction would typically fall under DHS OIG, which can investigate fraud, waste, and abuse in contracts.

Related Government Programs

USCG Vessel Maintenance and Repair
Department of Homeland Security Ship Operations
Maritime Infrastructure Support Contracts
Federal Ship Building and Repair Spending

Risk Flags

Potential for cost overruns if unforeseen issues arise during repairs.
Contractor performance risk given the specialized nature of vessel repair.
Tight performance period may pose scheduling challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.9 million to JAG INDUSTRIAL SERVICES, INC. THIS AWARD IS FOR THE DOCKSIDE REPAIRS TO THE USCGC WAESCHE IN ALAMEDA, CA. PERIOD OF PERFORMANCE IS 01 JUN 2026 TO 27 JUL 2026.

Who is the contractor on this award?

The obligated recipient is JAG INDUSTRIAL SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $1.9 million.

What is the period of performance?

Start: 2026-06-01. End: 2026-07-28.

What is the track record of JAG INDUSTRIAL SERVICES, INC. with federal contracts, particularly for vessel repair?

A review of federal contract databases would be necessary to fully assess JAG INDUSTRIAL SERVICES, INC.'s track record. Key metrics to examine include the number of previous federal awards, the total value of those awards, and the types of services rendered. Specifically, identifying past performance on similar vessel repair projects, especially for Coast Guard or Navy assets, would be crucial. Any history of contract modifications, disputes, or performance issues would also be important considerations. Without this specific data, it's difficult to definitively assess their reliability and expertise for this particular award.

How does the daily rate of $33,747 compare to industry benchmarks for similar vessel repair services?

Determining a precise industry benchmark for a daily repair rate of $33,747 is challenging without a detailed scope of work. Vessel repair costs vary significantly based on the size and type of vessel, the complexity of the repairs (e.g., hull work, engine overhaul, systems integration), and the location of the shipyard. For a 57-day period, this rate suggests a substantial undertaking. To establish a true benchmark, one would need to compare this rate against contracts for similar classes of vessels undergoing comparable repair activities, considering factors like labor rates, materials, and overhead specific to the Alameda, CA region. Anecdotal evidence suggests this rate could be within the expected range for specialized maritime maintenance, but a formal cost analysis would be required for definitive comparison.

What are the primary risks associated with this fixed-price contract for dockside repairs?

The primary risk with this fixed-price contract lies in potential unforeseen issues that could escalate costs for the contractor, potentially leading to quality compromises or delays if the contractor attempts to absorb unexpected expenses. While the government benefits from price certainty, the contractor bears the risk of scope creep or discovery of latent defects requiring extensive work beyond the initial estimate. For example, discovering significant structural damage to the hull or complex system failures during the repair process could strain the contractor's resources and expertise. Effective oversight by the Coast Guard is critical to manage the scope and ensure the contractor addresses all necessary repairs within the agreed-upon price.

What is the historical spending pattern for dockside repairs on USCGC vessels by the U.S. Coast Guard?

Analyzing historical spending for USCGC vessel dockside repairs would involve examining past contract awards for similar maintenance activities across the Coast Guard fleet. This would include identifying trends in contract values, durations, and the types of repairs performed. Understanding the frequency of such repairs for specific vessel classes, like the Waesche, and the average cost per repair event would provide context for the current $1.92 million award. Significant fluctuations in historical spending could indicate changes in vessel condition, maintenance strategies, or budget allocations. A consistent pattern of spending would suggest a predictable need for such services.

How does the number of bids (5) influence the potential value for money achieved in this procurement?

Receiving 5 bids generally suggests a healthy level of competition for this specific procurement, which is positive for value for money. A higher number of bids typically increases the likelihood that the government receives competitive pricing, as contractors are motivated to offer their best terms to win the contract. It also broadens the pool of potential solutions and technical approaches. While 5 bids are good, the ideal number can vary depending on the complexity and size of the requirement. For a contract valued at $1.92 million under SAP, 5 bidders indicate that the market was sufficiently engaged. This level of competition likely helped to drive down the price compared to a sole-source or limited-source scenario.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08526QLREP0007

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 E CHICAGO ST, JONESVILLE, MI, 49250

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,923,563

Exercised Options: $1,923,563

Current Obligation: $1,923,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline